How to slash YOUR household bills by £1,500 and forget Blue Monday

With Blue Monday, the most miserable day of the year, approaching on January 15, many people will be feeling down in the dumps.

The term Blue Monday was coined by psychologist Dr Cliff Arnall, who worked out a formula to show how the third Monday in January is especially bad.

It takes into account factors including the average time for New Year’s resolutions to fail, the bad weather, debt, the time since Christmas and motivational levels.

However, prospects could actually be looking up for the dreaded day as money experts are predicting a glimmer of light at the end of the tunnel – and providing seven ‘reasons to be cheerful’ when it comes to finding ways to save in 2024.

After two years of hardship in the cost-of-living crisis, consumer champion and CEO of AI household money-saver Nous.co, Greg Marsh, has revealed that by following a few simple steps, you can save more than £1,500 on your household bills.

Save on energy bills

The expert’s first thing to be cheerful about is that most households can already save on their energy if they know where to look.

On top of this, energy bills are actually forecast to decrease by 14% in April. 

Cornwall Insight predicts a typical bill will fall from £1,928 to £1,660 – a drop of £268 a year, which is 34% lower than prices paid under the Energy Price Guarantee. 

Smaller mobile bills

Secondly, the cost of cheap SIM-only deals ‘has come down steeply over the last five years’. 

Greg explains: ‘Since 2018, the price of a 10GB SIM-only deal has dropped by 42%. 

‘The millions of households who are out of contract could save hundreds in a year.

‘The average monthly mobile bill for 3GB if you’re out of contract is £31.79, or £381 annually, according to Nous data, but you can get a 3GB sim-only deal for £5 a month to save £321 a year’. 

Adding: ‘Anyone out of contract can switch to a cheap SIM-only deal by moving network or haggling with their provider’. 

Cheaper broadband

If you’re looking to save cash on your broadband, the consumer champion advises that you can do so by switching to an independent provider.

He says: ‘Monthly prices on offer from independent full-fibre network providers are frequently lower than those offered by big brands. 

‘Smaller networks were offering services for as little as £25 a month in October 2023, compared to £50-£60 from big name providers. 

‘Based on the cost of a typical out-of-contract bill, households could save £429’. 

You need to check your online account or latest bill to find out if you’re out of contract for your broadband. 

Then, use an online tool to check the broadband providers available in your area to help show how much you can save. 

Inflation tumbling

When it comes to inflation, Greg adds that it ‘has fallen faster than predicted, more than halving since its peak’. 

He explains: ‘In November the Consumer Price Index, which reached a high of 11 per cent in 2022, fell to 3.9% in November, considerably lower than expected.

‘And the trend is set to continue. While prices are still rising they are doing so more slowly, which means the UK is moving closer to the Bank of England’s 2% target’.

He recommends that while inflation has slowed, prices are still rising, so to help bring down spending, switching your supermarket from Waitrose to Aldi can save £20 on an average shop, according to research from Which? 

Mortgage rates dropping 

Another money fact to bring joy ahead of Blue Monday is that according to the expert, home loan rates have fallen to their lowest level since Liz Truss’s 50-day stint in late summer 2022. 

He says: ‘The average rate on a two-year fix fell from 6.04% at the start of December to 5.83% on Friday, according to financial data analyst Moneyfacts. 

‘Some fixed-period deals are now available at under 4%. A household with a typical loan of £200,000 switching to a 4% deal will see monthly payments of £1,055, compared to payments of £1,289 on a 6% deal.

‘This will relieve some of the burden for the 1.6 million households who are due to come off their existing fixed deals in 2024 (though they will still see significant increases). 

‘Mortgage rates are forecast to fall further this year as the Bank of England is expected to start cutting the base rate in the latter half of 2024’.

Greg’s advice would be that households who are remortgaging can now receive rewards typically worth hundreds of pounds with Nous.co, ‘which can connect them to a reliable broker and put significant sums of money back into their pocket’s. 

He claims that for a household with a typical £200,000 mortgage, these rewards can exceed £250.

Pay rising faster than prices

Next on the list, is that wages are at last going up faster than prices for the first time in two years, ‘meaning workers’ pay is going further’. 

The expert says: ‘Real pay (adjusted for inflation) grew by 1.2% in the three months to October compared to the previous year. 

‘Start preparing for your end of year pay review. If you’re requesting a pay rise, make a clear list of reasons you deserve to be paid more to take to your boss, and have a realistic figure in mind’.

Fuel getting cheaper 

The final point is that petrol prices are falling, ‘hitting their lowest level for two years in December’. 

Greg says: ‘Price per litre fell 6p in December to 146.69p. A full 55-litre tank now costs £77.32, down £3.40 in the month, according to RAC data

‘Prices peaked in July 2022 at a record £1.92p a litre for petrol and £1.99 for diesel. 

‘Based on typical usage, a household will pay £69 a year less on petrol based on current prices’.

He suggests that drivers use the RAC app to find the cheapest fuel in their area and avoid filling their tanks at motorway service stations, which tend to be the most expensive.